Trust and Will
Trust
There are two types of trusts:
- Revocable- This is a living trust which is created while you are alive and funded with the assets you choose to transfer into it. You have full control over the assets.
- Irrevocable- The irrevocable life insurance trust is made by you during your lifetime. This trust owns a life insurance policy on the individual's life by a transfer of ownership of an existing policy or through annual contributions. You forfeit all rights to the property contained in the trust.
Will
A will is extremely important in order to protect your assets and other important factors of your life. It is important to get help when writing a will, as it will end up costing you more if you make mistakes. Avoid these common mistakes:
- Ignoring state law differences
- Not revoking an earlier will
- Assumptions
- Vagueness